How does elasticity affect a company's pricing policy?
(A) If demand is unitary elastic, the company knows that a decrease in price would decrease total revenues.
(B) If demand is unitary elastic, the company knows that an increase in price would increase total revenues.
(C) If demand is elastic at the current price, the company knows that an increase in price would reduce total revenues.
(D) If demand is inelastic at the current price, the company knows that an increase in price would reduce total revenues.
Ans: (C) If demand is elastic at the current price, the company knows that an increase in price would reduce total revenues.
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
Explain the theory of optimum currency areas
What will be an ideal response?
A price ceiling placed on a market for rental apartments is called
a. rent control b. rent subsidy c. apartment subsidy d. public housing e. public supplement
A binding price ceiling is presented graphically as a(n):
a. price at equilibrium. b. price below equilibrium. c. price above equilibrium. d. inefficiently low quality of the good provided.